n NISM Certifications
VII NISM Series VII
Medium

Clearing Members who settle trades for other trading members can set maximum collateral limits for each member and custodial participant. State True or False.

Practice question from NISM Series VII Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. True

    Correct answer

  2. B

    False

Why this is the answer

Clearing Members may set maximum collateral limits for each trading member or custodial participant to manage exposure and maintain risk control. Such limits must be configured within the time specified by the exchange.

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